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The
supply chain - a term now commonly used internationally - encompasses
every effort involved in producing and delivering a final product
or service, from point of origin to point of final use - i.e.
not just to point of sale!
Supply
Chain Management is a series of Processes, that include, inter-alia,
managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking,
order entry and order management, distribution across all channels,
and delivery to the customer.
Due
to its wide scope, Supply Chain Management must address complex
interdependencies, in effect, creating an "extended enterprise"
that reaches far beyond the factory door. Today, material and
service suppliers, channel supply partners (wholesalers/distributors,
retailers), and customers themselves, as well as supply-chain
management consultants, software product suppliers and system
developers, are all key players in supply-chain management.
In
years past, manufacturers were the drivers of the supply chain
- managing the pace at which products were manufactured and distributed.
Today, customers are calling the shots, and manufacturers are
scrambling to meet customer demands for options/styles/features,
quick order fulfillment, and fast delivery.
Companies
that learn how to improve management of their supply chain will
become the new success stories in the global marketplace. Benchmarking
studies show significant cost differences between organizations
that exhibit best-in-class performance and those with average
performance.
Senior
Management from all industries, no matter how large or small their
organization, are constantly looking for PROVEN and EASILY IMPLEMENTED
techniques to improve their Supply Chain Processes - and most
commonly in the operations that are so critical to Customer Satisfaction,
Revenue Growth and Profitability.
But
no organization should embark upon major Process Improvement without
first having a clear understanding of the performance and competitiveness
of their current operations.
Implementation of practical Performance Measures that are appropriate
to your business will provide maximum visibility of supply chain
effectiveness, and thus identify where to start the Process Improvement!
Importantly,
they also provide a platform for unifying functional and individual
actions and behavior in support of business objectives.
Supply
Chain Management is also largely concerned with controlling and
tracking Inventory, whether it is in Transit, or Stationary; whether
in Raw Materials, Work-in-Process, or in Finished Product; and
finding that balance between how much Inventory to make available
to satisfy Customers, and the cost of producing and carrying Inventory.
Inventory
builds up when the supply chain processes are not performing effectively,
and when partners along the supply chain are not communicating
and sharing information. This is when the inventory stops "moving",
becomes stationary, and incurs unnecessary cost!
By
using a combination of practical Performance Measures (to make
the supply chain "visible") and simple, proven Inventory
Management techniques (to get the right balance between investment
and service), an organization can more effectively determine where
and how to start Supply Chain Process Improvement initiatives.
TeamAsia
has been a pioneer in promoting and communicating the benefits
of Supply Chain Process Improvement for 10 years, and in conjunction
with All Asia Business Solutions Pty Ltd, will present two seminars
on "Practical Performance Measures" and "Inventory
Management Simplified" in Hong Kong and Manila in March.
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